var y, c, k, n, lambda, z;.
predetermined_variables k;

varexo e;

parameters gamma, beta, B, alpha, delta, rho;

gamma = 1.004;
beta  = 0.99;
B = 2.786;
alpha = 0.261;
delta = 0.0176;
rho   = 0.95;

model;
1/c = lambda;
B = lambda*exp(z)*(1-alpha)*y/n;
gamma*lambda = beta*lambda(+1)*(exp(z(+1))*alpha*y(+1)/k(+1)+1-delta);
y = exp(z)*k^(alpha)*n^(1-alpha);
c + gamma*k(+1) = y+(1-delta)*k;
z = rho*z(-1)+e;
end;

initval;
y = 0.5;
c = 0.5;
k = 0.5;
n = 0.5;
lambda = 0.5;
z = 0;
e = 0;
end;

steady;
check;

shocks;
var e=1;
end;

stoch_simul(order=1);